Rebalance finances towards early intervention, MP tells Treasury
Janaki Mahadevan
Sunday, July 3, 2011
MP Graham Allen has challenged the Treasury to rebalance government spending towards early intervention and establish a fund that will raise 200m from private investors.
The second report published by Allen as part of his government-commissioned review, Early Intervention: Smart Investment, Massive Savings, calls on the Treasury to gradually rebalance government spending towards early intervention in the next comprehensive spending review.
Further to the Early Investment Foundation proposed in Allen's first report published in January, he calls for the establishment of an early intervention fund that should look to raise around £200m of investment.
By working closely with the Big Society Bank, Allen said the fund should develop a range of products for potential investors and initially raise £27m to support pilots in the early intervention places recommended in Allen's first report.
Allen said: "'The government has a great opportunity to not only talk the talk on early intervention, but walk the walk too. There are no magic bullets in this report just a tough, practical guide to changing our spending culture from late intervention to early intervention, which has to be driven inside Whitehall by ministers and officials, and outside Whitehall by an independent Early Intervention Foundation."
Also proposed in the report is an annual statement to parliament that sets out the progress made on the policies, programmes and expenditure in place for early intervention.
Allen is clear in his report that creative ways of financing early intervention should not act as a substitute for government funding but be additional.
The report outlines a need for a dedicated team of experts including representatives from the Cabinet Office and Treasury and from financial organisations to co-ordinate what Allen terms as the current "disparate activity" on early intervention and social investment.
In order for payment-by-results to be successful Allen's report suggests that the Treasury and other departments develop methods of accounting to ensure that future payments will be honoured for successful outcomes.
One way of doing this, according to the report, is by expanding community budgets, which are currently being trialled for families with complex needs, to include early intervention schemes.
Allen also concludes that the Department for Communities and Local Government should put in place incentives so that local areas reap the most benefit from social investment.
Other recommendations include developing incentives for social and philanthropic investors and businesses around capital gains tax and corporation tax.
Further to the Early Investment Foundation proposed in Allen's first report published in January, he calls for the establishment of an early intervention fund that should look to raise around £200m of investment.
By working closely with the Big Society Bank, Allen said the fund should develop a range of products for potential investors and initially raise £27m to support pilots in the early intervention places recommended in Allen's first report.
Allen said: "'The government has a great opportunity to not only talk the talk on early intervention, but walk the walk too. There are no magic bullets in this report just a tough, practical guide to changing our spending culture from late intervention to early intervention, which has to be driven inside Whitehall by ministers and officials, and outside Whitehall by an independent Early Intervention Foundation."
Also proposed in the report is an annual statement to parliament that sets out the progress made on the policies, programmes and expenditure in place for early intervention.
Allen is clear in his report that creative ways of financing early intervention should not act as a substitute for government funding but be additional.
The report outlines a need for a dedicated team of experts including representatives from the Cabinet Office and Treasury and from financial organisations to co-ordinate what Allen terms as the current "disparate activity" on early intervention and social investment.
In order for payment-by-results to be successful Allen's report suggests that the Treasury and other departments develop methods of accounting to ensure that future payments will be honoured for successful outcomes.
One way of doing this, according to the report, is by expanding community budgets, which are currently being trialled for families with complex needs, to include early intervention schemes.
Allen also concludes that the Department for Communities and Local Government should put in place incentives so that local areas reap the most benefit from social investment.
Other recommendations include developing incentives for social and philanthropic investors and businesses around capital gains tax and corporation tax.
